As Blockchain technology holds the promise of revolutionizing the economic and social relations with the help of its technical potential improving the efficiency and reliability of financial transactions and exchanges of data, it is highly likely for this technology to become a “disruptive innovation” in the near future. Although blockchain originally emerged and found support in the tech community challenging the traditional financial model worldwide, there is still a need to emphasize the constructive sides of this technology as well as the disruptive ones. Fueled by its potential to create a new foundation for the global economic and social system, professionals nowadays refer to Blockchain as a new infrastructure acting as a foundation rather than a disruptive technology altogether.
It’s not surprising to witness that many businesses and organizations all around the world starting to use blockchain technology. However, despite the increasing number of blockchain-powered businesses across different regions each day, there are still misconceptions about what a blockchain company is actually like or what their value should be, what sort of a roadmap, team, project etc. can be referred to as being “substantial” and “trustful” for making a successful blockchain company in the sector. Because of the various requirements such as forming a talented team, competent advisors and a consistent roadmap, e.g., it’s not sufficient for a business to use the blockchain technology in itself to be called a “Blockchain-based business.” Therefore, if we wish to make mention of a business on the blockchain technology, we can make use of a few pointers to create our personalized filter.
Blockchain-based businesses should build a valuable and differentiated product, and there should be a regulative framework to address the fraudulent activities especially if there is a new token involved. Since it is difficult to draw a clear line between virtual currencies that function like traditional investments, fiat currencies and those that function as utility tokens, some regulatory actors like SEC, CFTC and FINRA have become extremely crucial in protecting the investors, maintain fair, orderly and efficient markets, and facilitate capital formation in digital markets. For example, The Securities and Exchange Commission (SEC) interprets certain coins and tokens as an offer and sale of securities, requiring the issuer to either: register the tokens with SEC, or identify an applicable exemption from registration requirements.
Secondly, a business on Blockchain should have a well-written “whitepaper” which should include a description of a particular product and how it’s going to solve a specific problem in the market; the tokens, how the raised funds are going to be used and lastly, a roadmap. In this sense, a whitepaper can be called as a manual, and it’s the only document that can help people understand what the company is bound to do.
It is of paramount importance to have a talented team whose members have to possess the technical skills, a background related to their related sector and finally, the knowledge of blockchain and other relevant technologies to be able to better describe and meet the expectations of potential customers and investors in the industry. Furthermore, the spirited and dynamic blockchain community may feed off the experiences of advisors and industry insiders as agility and know-how can be invaluable resources. Most of the leaders in various sectors, researchers, software designers and blockchain experts who are passionate about the potential uses of cryptocurrencies and blockchain technology are already eager to get involved in groundbreaking projects. Therefore, it is crucial to work along with experts and specialists in their sectors. At this point, it should be kept in mind that many blockchain meetups and events offer a golden opportunity to meet such advisors, and establish strong relationships and potential partnerships.
Now, let’s talk about one of the leading blockchain-based companies in the fintech sector for a better understanding of what we were saying until now.
Colendi: New blockchain-based micro-credit company
As can be learned from Colendi website, the team consists of a large number of advisers and investors. Colendi has also partnered up with ConsenSys and its branch, Token Foundry to receive technical advisory and integrate the Colendi Project with the Ethereum blockchain and creation of the ERC20 type Colendi Token. Colendi receives ongoing technical assistance on all areas of the Colendi Project from the Token Foundry team which allows the project to be monitored, refined for achieving the company’s long term goals.
Based on decades of experience working with developing economies, banking, technology, and business initiatives, Colendi has created a decentralized, blockchain-based credit evaluation system anchored on proprietary machine learning algorithms that drive intelligent process automation. The results go beyond traditional financial history review, also incorporating data from many modern sources: social media, smartphone usage, shopping preferences, and payments, bill payment history and more to form a unique self-sovereign ColendiID and universal “financial passport.” The resulting credit score is kept available on decentralized, end-to-end encrypted data storage and only that user has access and control. Colendi is a decentralized, secure and trustless protocol that makes microcredit, peer-to-peer lending and installment shopping a reality for unbanked and underbanked populations around the globe.
Colendi also has co-founded the Collateral Insurance Program Consortium with nine other leading blockchain companies in lending space under the use of the Decentralized Insurance Protocol (DIP). Although Colendi differs distinctly from the other platforms as Colendi provides the Credit Score and not the credit itself, it was a vital step in the road to establishing tomorrow’s decentralized banking system with the other ecosystem players. In the roadmap of Colendi project, emergency funds were designed to be provided through the staking of Colendi Tokens by non-protocol layer contributors who can claim rewards as an underwriter. Colendi platform aims to bring increased certainty and protection to the crypto-lending market. Enabling Colendi Wallet to make the users stake Colendi Tokens and to convert them into contributors to the Collateral Insurance Program. Currently, Colendi Foundation makes the judgment call out the bad actors, releases reports with full transparency respecting the users’ privacy. Colendi strives to work with private regulators and most prominent auditors in the world to achieve the highest possible precision, consistency, and data security, and make Colendi’s network the primary drive for mass adaptation.